Sajjad1994Requesting for an evaluation of my essay on basis of the undermentioned prompt :-
QUESTIONThe following memo was circulated by the management team of a retail company:
“We are very pleased to announce the relocation of our inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near Company headquarters in Boston. This consolidated location will cut the company’s expenses for warehouse rent in half. As a result we expect our monthly profitability to go up by this amount.”Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
ESSAYThe argument under reference, an extract from internal memo by the company management, highlights the need to centralize the inventory to one location instead of the existing framework of four dispersed locations throughout the country, aimed at reduction in operating costs and consequent increase in profitability. The author has developed his argument relying on the doubtful assumption that the existing customer base shall remain intact, and also served with similar efficiency as in the past, post the relocation of inventory to a single new warehouse near Company headquarters in Boston.
At initial glance, the argument seems fairly convincing; however, post an in-depth analysis , it becomes evident that the proposed initiative suffers because of lack of supporting evidence and certain far-reaching assumptions. It needs to be highlighted that the supporting evidence in terms of components to sales as well as comparative operating costs for both scenarios have not been deliberated upon in the memo. Besides, as regards the logical consistency of the argument, there are several limitations as well as critical flaws, which have been highlighted in the succeeding paragraphs.
Firstly, the author has not substantiated his argument in favor of a central location for inventory through depiction of changes in operating costs necessitated due to hiring of additional space and manpower for the centralized location as compared with the existing costs for four different warehousing locations.
Secondly, the argument lacks supporting evidence for preferring a particular location, since the initiative will entail larger distances and the associated increase in delivery time frames to the existing customer base at various locations across the country. The author needs to highlight the plans to cater to new delivery modes and automation initiatives in this regard.
Thirdly, the author's assumption regarding the increased profit estimates have not been substantiated in the form of savings accrued consequent to rationalization. Detailed calculations for the same along with related calculations for increase in land purchase, labor and other fixed costs need to be furnished.
Towards improving the logical soundness of the argument, the author should consider furnishing further details of the proposed initiative in the form comparative estimates for both the scenarios, existing subscriber base locations, requirement of additional resources, and calculations related to envisaged profit estimates.
In essence, the argument, in its existing state, is logically deficient and suffers from critical flaws. The author needs to include adequate supporting evidence in the form of calculations, location analysis, and resource plans to substantiate the preference to adopt a centralized location framework for the inventory warehousing.